The concurrent restructuring of the Sida-sponsored PSD Hub programming is an opportunity to re-tailor Sida’s private sector development work to a political environment that is increasingly open to private-sector led development and inclusive economic growth.
The PSD Hub served as capacity-building mechanism for the Ethiopian private sector since 2012 and was home to Ethiopia’s first public-private consultation framework, the Ethiopian Public Private Consultative Forum (EPPCF). Since 2012, the PSD Hub has supported public private dialogue and capacity building for the Ethiopian private sector. In 2015, Sida signed an agreement with the Ethiopian Chamber of Commerce and Sectoral Association (ECCSA) for phase III of the PSD Hub with a focus on research, advocacy and public-private dialogue and capacity building interventions.
As part of these interventions, the enhancement of the Ethiopian Chamber system and the building of the financial sustainability of BMOs through the Innovative Grants Fund (IGF) intended to create an enabling business environment to the private sector actors and contribute to the economic growth of the country. Based on recommendations in the PSD Hub Midterm review report, conducted by Genesis Analytics in 2018/2019, Sida decided to re-establish the PSD Hub as a program independent from any potential beneficiary organization, such as ECCSA, due to skill and personnel constraints.
Genesis Analytics.“MTR of the PSD Hub Capacity Building for the Sustainability of the ECCSA Phase III Project and the Assessment of a Small Grant Project” .Midterm Review Report. February 19 2019.